The Cocoa Chef specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However, Harry Smith, the firm's new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Listed below are activity and cost information relating to two of Cocoa Chef's major products.\ \\\\table[[,Muffins Cheesecake,],[Revenue,

$74,200

,

$64,400

The Cocoa Chef specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However, Harry Smith, the firm's new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Listed below are activity and cost information relating to two of Cocoa Chef's major products. Using activity-based costing, which one of the following statements is correct? Select one: a. The muffins are $2,380 more profitable. b. The cheesecakes are $420 more profitable. c. The muffins have a higher profitability as a percentage of sales and, therefore, are more advantageous. d. The muffins are $2,800 more profitable